Gas Regulator Levies Act, 2002
R 385
Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 5 : Requirements and Limitations regarding the Values and Benefits of Policies (Section 54)Part 5A : Policies other than Policies to which Part 5B applies5.3 Fund member policies |
| (1) | Where a causal event occurred in respect of a fund member policy on or after 1 January 2001, but before the effective date, and the insurer on account of that causal event deducted causal event charges which in total exceed the maximum prescribed in subregulation (2), the insurer must: |
| (a) | if the policy has not come to an end before the effective date, within 6 months after the effective date credit the policy with the amount by which the total causal event charges deducted exceed the prescribed maximum ("the excess amount") plus interest on the excess amount calculated in accordance with regulation 5.5; or |
| (b) | if the policy has come to an end before the effective date, and if the amount by which the total causal event charges deducted exceed the prescribed maximum ("the excess amount") is R150 or more, upon the written request of the member, or in the case of a deceased member upon the written request of the dependants or nominees of the member, which request in every case must be received by the insurer within three years after the effective date, within 6 months after having received the written request pay the excess amount plus interest on the excess amount calculated in accordance with regulation 56, less any tax that must be deducted, to the member or to the dependants or nominees of a deceased member. |
| (2) | The maximum deductible charges for purposes of subregulation (1) are: |
| (a) | where the causal event is one contemplated in paragraph (a), (c), (f) or (g) of the definition "causal event", 35% of the investment value immediately before the causal event; |
| (b) | where the causal event is one contemplated in paragraph (b) of the definition "causal event", a percentage of the investment value immediately before the causal event equal to 35% multiplied by the amount by which the basic premium has been reduced divided by the basic premium before it was reduced; |
| (c) | where the causal event is one contemplated in paragraph (d) or (e) of the definition "causal event", 35% of the amount by which the investment value immediately before the causal event has been reduced. |
| (3) | Where a causal event occurs in respect of a fund member policy on or after the effective date but before 1 January 2018, the insurer may not on account of that causal event deduct causal event charges which in total exceed the maximum prescribed in subregulation (4). |
[Regulation 5.3(3) substituted by regulation 6(g) of Notice No. 1437 of 2017]
| (4) | The maximum deductible charges for purposes of subregulation (3) are: |
| (a) | where the causal event is one contemplated in paragraph (a), (c), (f) or (g) of the definition "causal event", 30% of the investment value immediately before the causal event; |
| (b) | where the causal event is one contemplated in paragraph (b) of the definition "causal event", a percentage of the investment value immediately before the causal event equal to 30% multiplied by the amount by which the basic premium has been reduced divided by the basic premium before it was reduced; |
| (c) | where the causal event is one contemplated in paragraph (d) or (e) of the definition "causal event", 30% of the amount by which the investment value immediately before the causal event has been reduced. |
| (5) | Where a causal event occurs in respect of a fund member policy during a period referred to in column 1 of Table A below, the insurer may not on account of that causal event deduct causal event charges which in total exceed the maximum percentage set out in the corresponding line in column 2 of the Table A below |
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Timing of causal event |
Maximum if causal event is one contemplated in the following paragraph of the definition "causal event" |
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for purposes of paragraph (a), (c), (f) or (g), the maximum percentage below of the investment value immediately before the causal event: |
for purposes of paragraph (b), the maximum percentage of the investment value immediately before the causal event equal to percentage below multiplied by the amount by which the basic premium has been reduced divided by the basic premium before it was reduced: |
for purpose of paragraph (d) or (e), the maximum percentage below of the amount by which the investment value immediately before the causal event has been reduced: |
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On or after 1 January 2018 but before 1 January 2019 |
20% |
20% |
20% |
|
On or after 1 January 2019 but before 1 January 2020 |
18% |
18% |
18% |
|
On or after 1 January 2020 but before 1 January 2021 |
16% |
16% |
16% |
|
On or after 1 January 2021 but before 1 January 2022 |
14% |
14% |
14% |
|
On or after 1 January 2022 but before 1 January 2023 |
12% |
12% |
12% |
|
On or after 1 January 2023 but before 1 January 2024 |
11% |
11% |
11% |
|
On or after 1 January 2024 but before 1 January 2025 |
10% |
10% |
10% |
|
On or after 1 January 2025 but before 1 January 2026 |
9% |
9% |
9% |
|
On or after 1 January 2026 but before 1 January 2027 |
8% |
8% |
8% |
|
On or after 1 January 2027 but before 1 January 2028 |
7% |
7% |
7% |
|
On or after 1 January 2028 but before 1 January 2029 |
6% |
6% |
6% |
|
On or after 1 January 2029 |
5% |
5% |
5% |
[Regulation 5.3(5) inserted by regulation 6(h) of Notice No. 1437 of 2017]
